Bank Account News

First Direct's current account design "makes sense" - 20/09/2007

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"More meaningful" savings could be encouraged by First Direct's decision to stop paying interest on current accounts, a financial expert has said.

First Direct said the changes to its products and services, including a text message facility to alert customers to potential infringement of their authorised overdraft limits, were prompted by customer research.

Kevin Mountford, head of savings of comparison website moneysupermarket.com, commented: "The product design makes sense and the sweeping option could encourage people to save on a more meaningful level rather than in dribs and drabs, so thumbs-up for that."

However, Mr Mountford suggested that savers could mimic the idea by setting up a monthly direct debit from a current account into a savings account that had good interest rates.

"There is certainly plenty of choice," he added.

First Direct is also offering an interest-free £250 overdraft and free text-message banking.

In addition, new customers who join the bank and open a first account from November can claim £100 if they are not wholly satisfied after six months.

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